The scheme allows permit holders to travel at half price or for 50p, whichever is lower. It also covers travel outside Surrey provided the bus stops in Surrey.

The concession applies all day on weekends and bank holidays and between 9am and 11pm on other days.

Backed by the Government under its Transport Bill, the idea is to reduce social isolation and give the elderly and disabled affordable access to facilities such as health care and shops.

The scheme will be financed in Surrey by the county council, which already spends £1.74 million on subsidised travel, and district authorities Early indications are that the number of permits is likely to double and the number of bus journeys should increase by 10%. The move was approved by members of Mole Valley Council's policy committee at its December meeting.

Heather Ward (Lab, Leatherhead North) said while it would not make "a massive difference", it would hopefully encourage more people to travel by bus.

After the meeting, Mike Watson (Lib Dem, Holmwoods) said his party had been campaigning for five years to improve the concessionary fares scheme.

"The revised scheme is very welcome," he added. "It will provide a low cost transport service for the more active elderly where we still have a bus service."

He said it would also free up the Dial-a-Ride service to operate in villages without a regular bus service, provide a direct service to destinations not serviced by regular buses and give a better service for the less active elderly.